Regional transportation options and costs of transmitting present and future energy sources influence selective choices. A multi-regional model permits energy policies to be addressed at a regional level of disaggregation. A multi-regional linear programming model of the nation's energy system is currently being developed at the National Center for Analysis of Energy Systems, Brookhaven National Lab. The two essential components providing the analytical power to such a model are: (1) an adequate representation of the regional cost structure of energy transportation, and (2) region-specific resource-supply functions. In support of these modeling activities, the Logistics Management Institute (LMI) has derived the volumes and transportation unit costs of coal, crude oil and natural gas shipped between the Nation's Census Regions. LMI has also provided regional supply functions in these same resources. The volumes and costs are based upon the 1985 Reference Case of the Federal Energy Administration's Project Independence Evaluation System (PIES) Model. Results in terms of volumes and unit costs of fossil fuels moved between Census Regions are shown in matrices. Coal movements are covered in Chapter I, crude oil in Chapter II, and natural gas in Chapter III. Coal supply curves are presented in Appendix A, oil supply curves in Appendix B, and natural gas supply curves in Appendix C. (MCW).

Despite the many benefits of energy, most of which are reflected in energy market prices, the production, distribution, and use of energy causes negative effects. Many of these negative effects are not reflected in energy market prices. When market failures like this occur, there may be a case for government interventions in the form of regulations, taxes, fees, tradable permits, or other instruments that will motivate recognition of these external or hidden costs. The Hidden Costs of Energy defines and evaluates key external costs and benefits that are associated with the production, distribution, and use of energy, but are not reflected in market prices. The damage estimates presented are substantial and reflect damages from air pollution associated with electricity generation, motor vehicle transportation, and heat generation. The book also considers other effects not quantified in dollar amounts, such as damages from climate change, effects of some air pollutants such as mercury, and risks to national security. While not a comprehensive guide to policy, this analysis indicates that major initiatives to further reduce other emissions, improve energy efficiency, or shift to a cleaner electricity generating mix could substantially reduce the damages of external effects. A first step in minimizing the adverse consequences of new energy technologies is to better understand these external effects and damages. The Hidden Costs of Energy will therefore be a vital informational tool for government policy makers, scientists, and economists in even the earliest stages of research and development on energy technologies.